Offshoring and Cross‐Border Interorganizational Relationships: A Justice Model*

In this article, we develop an interorganizational justice model to explain cross‐border interorganizational relationships. The model contends that cultural distance (construed as the cultural differences between offshoring partners) would influence behavioral uncertainty and the boundary spanners' perceptions of justice. Specifically, the model predicts that high levels of behavioral uncertainty are likely to reduce relational commitment, whereas low levels of behavioral uncertainty are likely to enhance relational commitment. However, boundary spanners' perceptions of distributive, procedural, and interactional justice would mitigate the negative impact of behavioral uncertainty on relational commitment. The model also predicts that culturally similar boundary spanners would be more likely to share similar perceptions of distributive, procedural, and interactional justice than culturally dissimilar boundary spanners. This model has implications for further theoretical discussion and empirical research as well as management practice. Managers could use the interorganizational justice model to assess shared perceptions of justice among boundary spanners and develop transcultural justice competencies.     

A Note on Air‐Cargo Capacity Contracts

Carriers (airlines) use medium‐term contracts to allot bulk cargo capacity to forwarders who deliver consolidated loads for each flight in the contractual period (season). Carriers also sell capacity to direct‐ship customers on each flight. We study capacity contracts between a carrier and a forwarder when certain parameters such as the forwarder's demand, operating cost to the carrier, margin, and reservation profit are its private information. We propose contracts in which the forwarder pays a lump sum in exchange for a guaranteed capacity allotment and receives a refund for each unit of unused capacity according to a pre‐announced refund rate. We obtain an upper bound on the informational rent paid by the carrier for a menu of arbitrary allotments and identify conditions under which it can eliminate the informational rent and induce the forwarder to choose the overall optimal capacity allotment (i.e., one that maximizes the combined profits of the carrier and the forwarder).     

The Surgical Scheduling Problem: Current Research and Future Opportunities

This paper reviews the general problem of surgical scheduling. We organize the literature based on the time frame or planning horizon of the schedule into six categories: capacity planning, process reengineering/redesign, the surgical services portfolio, procedure duration estimation, schedule construction, and schedule execution, monitoring, and control. We survey past work and suggest topics for potential future research in each of those areas.     

The Workers' Compensation System in Victoria: Who Takes the Blame?

Four years after its inception, Workcare, the Victorian Government's new workers' compensation scheme, has failed to live up to its promise. Recent reforms have concentrated on identifying groups responsible for the ‘rorts’ and cost ‘blowouts’ of the scheme. It is argued that although this sort of intervention might make economic sense, it continues a tradition of scapegoating individual workers rather than trying to analyse the complex workings of such schemes. Several of the assumptions underlying Workcare (and similar systems) are discussed in order to demonstrate the potential for failure in any benefits delivery system based on status rather than need.     

Students as a resource for introducing intercultural education in business schools

Despite a recognized need for a global mindset, opportunities for US business school students to gain hands‐on diversity training regarding intercultural issues remain rare. The reasons for this neglect include a lack of agreement on how to teach intercultural awareness and a paucity of faculty qualified to do so. In order to introduce intercultural education into a core business course, students were offered the opportunity to participate in an extra‐credit project that required the development of a proposal for an international joint venture and afforded them the chance to learn about each other while pursuing a superordinate goal of value to each. Thirty‐nine cross‐cultural teams were created, each of which had a partner from the US and a partner from a different country. Both quantitative and qualitative analyses revealed that the value of the project was closely related to the amount of learning that reportedly took place in both the business and cultural realms. Importantly, 73% of the students reported a strong interest in meeting people from different cultures as a result of participation in the project.     

A hypothesis about the decline of fertility

The hypothesis proposed earlier seems to be supported by the analysis of U.S. fertility. Urbanization was consistently negatively correlated with thelevel of fertility in 1810, 1860, 1920, and 1940. Urbanization was not significantly correlated with thedecline of fertility in the period, i.e. from 1800 to 1860; from 1860 to 1920; and from 1920 to 1940. For the period from 1800 to 1860, however, the decline was closely associated with a proxy variable for what is called the spirit of autonomy, i.e., a feeling of control over one's life. It is hypothesized that this sense of control extended to control over fertility. After 1860 the ideas became so widespread that they were no longer associated with any particular group, region, religion, or class. It was just a matter of time until the ideas spread slowly to all groups.     

The Effect of Risk Beliefs on Property Values: A Case Study of a Hazardous Waste Site1

Health risk beliefs of homeowners near a landfill site were assessed in a survey and compared to expert judgments of the health risks of living near the site. A bimodal distribution of health risk beliefs suggested sharp disagreement between the experts and at least some of the residents. Correlates of high risk beliefs included perception of odor from the site, exposure to media coverage of the problem, having children living at home, age (younger respondents more concerned), and gender (females more concerned). An aggregated neighborhood health risk belief predicted reductions in home prices even after controlling for home physical characteristics, such as size and other disamenities such as proximity to a freeway. In the 4100 homes near the site, the estimated depression in property values was estimated to total about $40.2 million before the site was closed and to be about $19.7 million after closure. Implications of these results for community conflict and for benefit-cost analysis of hazard site remediation are discussed.